UAE’s state-owned fund Mubadala plans overseas investments

Abu Dhabi state-owned fund Mubadala Investment Company is lining up new overseas investments in 2017 and may also sell or reduce some of its existing stakes in companies, its chief executive said on Thursday.

Mubadala, which is merging with Abu Dhabi-owned International Petroleum Investment Company (IPIC), will not see any change it its strategy after the merger, which will be completed in May, Khaldoon al-Mubarak told Reuters in an interview.

The company said in January the merged entity would have assets of about $125bn.

“For 2017, we have lined up several very interesting and important investments,” al Mubarak said, adding the fund would continue to invest in traditional sectors as well as new sectors such as energy and technology.

“We are not shifting focus, investment is a more broader, more descriptive word.”

Al Mubarak hinted that Mubadala, which recently cut its stake in Advance Micro Devices, may pare down its stakes in other companies this year.

“For 2017, if we find the right opportunity to divest at the right time, we will do so. But that doesn’t change our growth trajectory and strategy,” he said.

Mubadala partly owns Emirates Global Aluminium (EGA), one of the world’s top five producers, which recently invited banks to pitch for a role in its planned initial public offering, Reuters reported this month.

Al Mubarak declined to give Mubadala’s investment outlay for 2017 saying it all depends on the investment cycle and deal flows.

Asked if the fund could sell shares and become a listed company, he said he did not foresee Mubadala itself being listed as it is owned by the government.

Listings could happen at the investment level, meaning Mubadala could take some of its subsidiaries public, he said.